Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Rupiah Declines Most in a Week on Dollar Demand From Importers

Dec. 27 (Bloomberg) -- Indonesia’s rupiah fell by the most in a week on speculation year-end dollar demand from importers is exceeding supply after the nation’s trade deficit widened.

Southeast Asia’s largest economy recorded a $1.5 billion trade shortfall in October, the biggest since at least 2008, official data show. That may widen the fourth-quarter current-account shortfall to 2.3 percent of gross domestic product, which would be the most in Bank Indonesia data going back to 1997, according to the monetary authority. A report on exports and imports in November is due on Jan. 2.

“The rupiah’s weakening is still driven by last-minute dollar demand from importers before the end of the year,” said Bayu Kurniawan, a Jakarta-based foreign-exchange trader at PT Bank Ekonomi Raharja, a unit of HSBC Holdings Plc. “The trade balance will gradually head toward a surplus, though it may record another deficit in November.”

The rupiah declined 0.1 percent to 9,666 per dollar as of 3:55 p.m. in Jakarta, the most since Dec. 17, according to prices from local banks compiled by Bloomberg. It has weakened 6.2 percent this year, poised for its biggest loss since 2008. The rupiah is the worst-performer among Asia’s 11 most-traded currencies after the Japanese yen.

One-month implied volatility, a measure of expected moves in exchange rates used to price options, was steady at 5.7 percent, compared with 13.2 percent at the end of 2011.

The yield on the government’s 7 percent bonds due May 2022 was dropped one basis point, or 0.01 percentage point, to 5.19 percent, prices from the Inter Dealer Market Association show. The yield fell 84 basis points this year.

To contact the reporter on this story: Yudith Ho in Jakarta at yho35@bloomberg.net

To contact the editor responsible for this story: James Regan at jregan19@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.